Does IKEA Have Layaway In 2024? (Try These Alternatives Instead)
As an expert in consumer finance with over a decade of experience, I often get asked if IKEA has layaway. After all, when making big ticket furniture purchases, it‘s nice to pay over time.
The short answer is no – IKEA does not offer traditional layaway plans in its US stores. However, I have great news! There are 5 smart alternatives you can use to finance your IKEA buys over months or even years, interest-free.
I‘ll compare the options in this guide so you can decide what works best for you. I‘ve also done some digging into the finer details around credit requirements, loan rates, and more key considerations.
Let‘s explore how you can afford that new bedroom set or kitchen makeover from IKEA!
Why IKEA Doesn‘t Do Layaway
Layaway allows a customer to reserve an item by putting down a deposit, then pay installments until it‘s paid in full. The merchandise is held by the retailer during this period.
IKEA likely doesn‘t offer layaway because:
- It already focuses on value – making affordable home furnishings at low price points
- Layaway costs retailers money to store and track reserved goods
- Other flexible payment options like 0% credit cards exist
But just because formal layaway isn‘t an option, that doesn‘t mean you can‘t finance IKEA goods over time. Let‘s look at what to do instead.
IKEA Financing Option #1: IKEA Visa Card
The IKEA Visa Card is a store-branded credit card with some nice perks:
- 0% APR on IKEA purchases for up to 10 month terms
- 5% back in IKEA rewards on IKEA spends
- 1% to 5% back at other retailers
This card lets you easily split a $1,000 dresser purchase into 10 monthly $100 payments without any interest fees. That makes budgeting easier!
Downsides are an above-average 26.49% variable APR and 3% foreign transaction fee. So best to pay it off each month.
IKEA Financing Option #2: Zip "Buy Now Pay Later"
Zip (previously Quadpay) is a popular "Buy Now, Pay Later" (BNPL) service accepted at IKEA.
With Zip at checkout, you can split IKEA orders into 4 interest-free installments paid bi-weekly over 6 weeks.
BNPL usage surged an eye-popping 435% YoY in July 2021 according to Experian.
Say that sleek $3,000 mid-century sectional caught your eye…
- Zip would let you pay $750 now, $750 again in 2 weeks, and so on
- 0% interest and no origination or transaction fees
Zip approves amounts up to $5k based on basic eligibility checks. Overall, BNPL can be an easy payment option for big buys if used responsibly.
IKEA Financing Option #3: Personal Loans
What if you need to finance a large IKEA purchase, say converting a spare room into a nursery for $15,000?
Personal installment loans allow fixed monthly repayment over 2 to 7 years typically. And rates are now very low – with online lenders offering under 10% to borrowers with good credit (scores 700+).
Here‘s a snapshot of personal loan rates across credit scores:
| Credit Score | Interest Rates | Max. Term |
|---|---|---|
| 740+ | 4.99% – 9.95% | 5 years |
| 720 | 5.99% – 10.95% | 5 years |
| 700 | 9.95% – 15.99% | 4 years |
Let‘s say you got approved for a 2-year $15,000 personal loan at 8% interest.
- You‘d repay about $642 monthly for 24 months totaling $16,704
- While not 0%, it‘s a fixed predictable way to pay over time
IKEA Financing Option #4: Credit Card Promos
Did you know many major credit cards now offer "Buy Now, Pay Later" type installment loan plans?
For example, Chase Freedom cards let you turn purchases over $500 into a fixed monthly payment term for 6 to 24 months at 0% interest.
Citi, Capital One, Wells Fargo and others offer similar promotions – either tied to a specific card or as special balance transfer offers.
Just remember deferred interest often kicks in after the promo period, so be sure to pay in full by then.
IKEA Financing Option #5: Retailer Layaway Programs
While IKEA itself doesn‘t offer layaway, many other big box retailers like Walmart, Best Buy, and Burlington do.
If having a fixed layaway plan is still most appealing, you could buy furniture and home goods at another store that provides that option.
You can also ask if any additional warranty services are included since you likely can‘t add IKEA‘s protection planbuying from a third party.
Below are a few top merchants with layaway and what they cover:
- Walmart – Electronics, furniture, jewelry, toys
- Best Buy – Major appliances, TVs, mobile phones
- Burlington – Clothing, accessories, footwear
Summarizing The Top 5 IKEA Financing Alternatives
| Option | Timeline | Interest | Credit Needed | Perks | Considerations |
|---|---|---|---|---|---|
| IKEA Visa Card | 6 – 10 months | 0% | Good / Fair | 5% rewards | High ongoing APR / Foreign fee |
| Zip BNPL | 6 weeks | 0% | Basic eligibility | Short-term option | Can overspend |
| Personal Loans | 2 – 5 years | 4.99% – 15.99% | Good / Excellent | Fixed rates | Credit history impacts rates |
| Credit Card Promos | 6 – 24 months | 0% (deferred) | Good | Bonus rewards | Deferred interest |
| Retail Layaway | 90 – 180 days | 0% | Any | Have item held | Limited categories |
Ready To Finance Your New IKEA Look?
As you can see, just because IKEA itself doesn‘t offer layaway plans doesn‘t limit your ability to responsibly finance over time.
Whether you‘re looking to upgrade your apartment on a budget or makeover an entire home, one of these 5 options should work!
I‘d recommend considering the 0% short-term IKEA Visa card and Zip BNPL for smaller purchases under $5k. For bigger spends, try for a low rate 2-5 year personal installment loan.
And be sure to use any new credit deliberately – never spending beyond your means. Planning ahead and maintaining on-time payments will help establish positive payment history.
Here‘s to affording the comfortable, stylish IKEA living space you deserve! Let me know in the comments if this overview on how to finance IKEA buys was helpful or if you have any other questions.
